The Coming *US* Crypto Trading FREEZE.

FTX United States might soon be pausing

a trading availability as I've said over

the last few days

it's time to get out and while I don't

want to encourage a bank run especially

for a company that I've suggested people

sign up for in the past I hate to say it

it's time to go I don't think anybody

saw this one coming it's quite Sad But

ultimately we still have time to move

which is good withdrawals have actually

been reactivated on the international

version

ftx.com briefly though so far only about

eight million dollars have been able to

be withdrawed uh this so far this

morning and Thursday in a one-hour time

frame I think that's relatively low but

in addition to this Potential Threat

coming to FTX us which is likely because

of the common ownership that you have

between ftx.com the international Wing

nftx.us even though they're different

systems and platforms with common

ownership and the SEC in White House now

watching FTX

probably gonna get a shutdown at ftxus

ftx.us the US version pretty dang soon

so get ready and personally uh get out

this is my opinion now what updates do

we have on the situation we've got

updates from not only this potential

shutdown coming but we've got updates on

Sam bankman freed some uh comments from

him and we also have some insight into

how this went so wrong at FTX so we're

going to talk about both of those let's

go ahead and start with what

sandbankment free just tweeted and then

let's get into how could this get so

freaking wrong after all binance pulled

out of the deal which we already knew

about yesterday in fact I was on Yahoo

finance just minutes before binance can

the deal and I'm like they should walk

you don't know who owns them anyone

who's ever tried to sue binance has

ended up giving up on their lawsuit

because he can't even figure out who

owns these companies so what's the

Fallout here well I think binance

probably smart from walking away from

the f FTX deal I think they'll take

multi-billion dollar loss trying to bail

out FTX that could lead unfortunately

though to more liquidations we don't

know how bad those will get but if we

see large liquidations because of an FTX

bankruptcy that could move over to the

US FTX version since they have the

international Wing in the U.S version

and then ultimately if price has got low

enough you could even see I need to say

it but you could see a company like even

binance go under and that's the last leg

standing

I mean so what do you think that binance

saw when they looked under the hood at

FTX and when you do have so much power

Consolidated here what does that mean

for the broader industry

yeah I think what happens is you look at

the books of FTX and what you'll

probably see is hey you've got six

billion dollars roughly this is what

Bloomberg and some commenters on

Bloomberg are estimating uh you've got

about six billion dollars that people

are trying to withdraw and binance

probably looked and said well you've

only got one or something like that

right we're estimating and so binance

has to decide do we want to cover that

loss that five billion dollar difference

is that worth it to us and how many

customers are we going to get after that

the big issue though is if everybody's

bailing out and leaving the centralized

platforms then what's the point of

bailing out FTX if you're going to get a

shell of a company so this is probably

where it would be a lose-lose situation

for binance to buy them because they

take a loss and then not have the

customers but if they don't bail out FTX

we could see liquidations that could

also then in turn hurt binance if the

underlying value of their cryptocurrency

these like their binance token collapses

which is possible and then you just

don't have centralized cryptocurrency

left everything's just you either have

it on a cold wallet or it just becomes

worthless so what's Sam bankman freed up

to right now well here's what he's

saying on Twitter first he shows us this

account with like six thousand three

hundred dollars on in it you know I

don't know if he's trying to flex

because he's bankrupt or if he's trying

to be relatable but anyway uh he starts

off this like 20 Page or 20 post Tweet

storm by talking about send which is

basically him talking about how much

easier they're going to try to make it

for international sending of money keep

in mind they're looking for like a

multi-billion dollar bailout to help

provide them liquidity uh so they can

survive because so he's he's kind of got

a prop up and sell FTX even though it's

basically bankrupt

so the first few posts he talks about

this then he says take a deep breath now

and talk about the future so talks a

little bit about respect including

respect for CZ uh and let's hit some of

the core posts that actually give us

some real interesting insight into

what's going on so

first Sam bankman freed says that note

ftx.us and binance.us two separate

companies are not currently impacted by

the ftx.com issues and that's worth

noting and something that I just started

this video off with as well but I expect

pain to come potentially to both of

these platforms if we continue to have

liquidity issues in the crypto market

now the good news is we had thank

goodness soft CPI this morning Consumer

Price Index and inflation reads and

that's actually propped up Bitcoin a lot

I mean look at this on the one minute

chart you've got a lot of volatility but

let's go to the one hour chart here look

at that pain we had yesterday going down

to 15.5 bouncing up to almost 18 000

here getting rejected to 18 000 now

sitting at 17 30. as long as BTC can

really hold over here this this is going

to be critical for liquidity for these

other firms though they don't have some

of the similar issues that FTX has or

had and see this morning JP Moore Oregon

warned of like a rush of margin calls

coming to the crypto industry that are

still being fulfilled and those could

push BTC down to 13

000 they projected although of course

that projection was made before the CPI

numbers came in as far as as soft as

they did so maybe some of that that pain

will be alleviated all right so now

getting to the juicy thread so here we

go first he says I'm sorry that's the

biggest thing I effed up and should have

done better I also should have been

communicating more recently uh that is

with more transparency but his hands he

says were tied during the duration of a

finance deal I mean that's kind of BS

because the binance deal wasn't actually

happening until you hit crisis level and

over the weekend and last week you're

like we don't have any liquidity issues

we're fine everything's good all the

rumors are fake news and they turned out

not to be fake news right that's like

the opposite of transparency then here's

the update this is all about FTX

International

non-uh us the non on US exchange FTX

users in the United States are fine he

says I don't buy that as far as I can

throw it I would not trust it right now

we could come back in the future maybe

but for right now I'd be out anyway FTX

International currently has a total

market value assets collateral higher

than client deposits uh okay well keep

this in mind that FTX International

currently has a total market value of

assets divided by collateral higher than

client deposits you could this may be

true and this means the company's not

insolvent insolvent is when you owe more

than your company is actually has an

asset so if you have a thousand

computers worth 10 million dollars those

are your assets and if you have debt uh

debts of 20 million dollars it means

you're insolvent like you're upside down

right

uh however it depends what they're

calling assets what if he's saying well

are intangibles like our brand value are

worth 20 billion dollars and that's

worth more than all of our collateral so

this is not necessarily liquid assets

right so that's a little bit of a red

flag to me I wouldn't trust that I think

it's a sales pitch too ironically

unsavvy Venture Capital investors but

okay

full story here is one I am fleshing out

every detail of but at a very high level

I effed up twice the first time a poor

internal labeling of Bank related

accounts meant that I was substantially

off on my sense of users margin okay

first of all are you like literally the

only dude who's sitting at a computer

like oh yes these are our bank stresses

and balances right now like where's the

team wait like where are the automatic

selling tools for when a collateral

Falls and things need to be sold on

margin see a lot of people at FTX were

using uh we believe the ftt token as

collateral because they were getting

yields on ftt and then they so they had

ftt parked as collateral and then what

they do is they go borrow money against

that ftt to go buy Bitcoin so let's say

you had 200 of ftt maybe they'd let you

buy a hundred dollars of Bitcoin but as

Matt Levine put it this morning on

Bloomberg that is the perfect way to set

up a death spiral and it's the stupidest

thing to do because basically if people

get concerned about the stability of FTX

as a brokerage a crypto brokerage

basically then the value of ftt goes

down because it's kind of like the value

of FTX because FTX created the token ftt

and FTX promised to buy with profits

more ftt token so in some way

ftt token is propped up on how strong

FTX is as a company but the problem with

that is if ftt

uh you know loses value and then people

question the value of FTX then ftt goes

down even more and if FT T goes down

even more you start having margin calls

on other people's assets which leads

people to want to leave the platform

leads to more pain and so what happened

ftt becomes less valuable then you start

getting a potential Bank Run essentially

on FTX now FTX becomes more value or

becomes less valuable right they both

lose value but if FTX becomes less

valuable then so does ftt so you have

this like stair-stepping death spiral

disaster of ftt gets less valuable when

FTX gets less valuable so if people are

using ftt as collateral and they're

getting margin called at FTX you have a

crisis of a situation this is different

from what you have with big Banks

because think about it if you have uh

you know a two million dollar margin

account and let's say you're in on Tesla

stock and you're you're out to you know

you take two million dollars of margin

out in cash well let's say and you park

that cash somewhere your cash doesn't

become less valuable because your Tesla

stock went down and JP Morgan as an

institution doesn't affect the value of

your Tesla stock or the value of your

dollar whereas ftt goes down when FTX

becomes more risky and if FDX becomes

more risky ftt goes down and you stare

step down it's terrible that connection

is so terrible and that's how you get

this debt spiral of a collateralized

nightmare so my sense before zero X

leverage USD liquidity ready to deliver

24 times the average daily withdrawals

actual numbers they only had 80 percent

of the needed withdrawals on Sunday and

leverage was actually 1.7 x which means

it's actually a lot for every hundred

dollars of of ask that somebody had

people were actually about 70 percent

leverage that's crazy and so of course

when it rains it pours we saw roughly

five billion dollars of withdrawals on

Sunday that's a pretty good estimate

because Bloomberg yesterday was

estimating 6 billion five that's

pretty dang close so I was off twice

which tells me a lot of things but

specifically and generally that I was

bad at and the third time I'm not

communicating enough well yeah that's

that's obvious anyway so then he

apologizes and says we're human says

that right now the priority is due right

by users which some people are like so

are you gonna make people whole but he

probably can't because he's bankrupt

as some people say you know no guarantee

so that's just an opinion so right now

we're spending the week doing everything

we can to raise liquidity I can't make

any promises about that but I'm going to

try and give anything I have that'll

make it work there are a number of

players we're in talks with letters of

intents and sheets we'll see how it ends

up basically he's asking everybody in

the world like hey we'll give you equity

in FTX if you could just bail us out

basically right at the end of the day I

was the CEO that means I was responsible

and he failed so what does that mean

going forward I have no idea also we're

basically closing down Alameda research

because it's worthless anyway and we

screwed up and in any scenario in which

FTX continues operating its first

priority will be radical transparency

well which kind of should have been done

in the first place which you think it

would be in blockchain it's kind of

weird

that he's talking about these like

transparency issues when technically

everything's on the blockchain right so

it's like you know Ikea it's like

we're in these situations where

you know blockchain's transparent but

then something crazy happens and then

it's like well I guess it wasn't that

obvious yeah

uh so there's definitely a lot of

cleanup to do here and I think

regulation is really going to help here

some other comments uh this is all about

FTX International the U.S based exchange

which accepts Americans is not

financially impacted it's 100 liquid

dude we've heard this a million times

before okay this is what what bear

Stearns told us too

so uh and then he gives some kind of

generic disclaimer here and uh yeah

that's the latest update with an apology

that we have from Sam bankman free

so uh and again remember look at this

Sam bankman free did tweet this on the

weekend a competitor is trying to go

after us with false rumors FTX is fine

assets are fine details right and then

we have that tweet actually being

deleted one day later

ah so okay where do we stand well where

we stand is uh the FTX token because of

bitcoin's rally is actually up and

because there is some hope that some

withdrawals are returning the FTX token

is actually up uh it's a marginally it's

up about two percent at the moment it's

still only at 3.63 so I mean I guess up

is relative when you're down like you

know a lot uh remember this was trading

for about 50 bucks earlier in the year

over here in April trading for three

dollars now so if you do three

3.66 divided by 50 bucks you're down

92.68 that's not exactly the best

performance here and and uh you know

you're down from uh uh you know 366 from

26 bucks just a bit ago you're down like

86 so sure the fluctuations on this are

going to be wild in fact the fact that

it just went from plus two percent to

plus six percent and implies the

liquidity here is very very thin when

the order books are thin you get very

very quick movements in either

directions

all right so big bottom line out of all

of this there are other brokerages who

don't use their own token for collateral

like Banks don't do that I don't believe

binance does that so that is a benefit

to binance

uh I don't believe coinbase does that so

I think that that's a benefit to

coinbase

I do think that the liquidity crisis we

are seeing is going to take probably a

few weeks to play out and it could lead

to some other shoes to drop so I do

think there's still downside potential

for cryptos however they are going to be

propped up with the rising tide of the

stock market moving up very nicely

because of what could potentially be

Peak inflation

this means a lot of the stress on the

crypto Market could actually settle down

and calm down and the way to play this

in my opinion is uh maybe if you're

thinking about hey when should I get

back into crypto my thought is well

certainly after you get your 60 off on

the amazing courses on building your

wealth link down below including the

entrepreneurial new course Elite

Hustlers University and the zero to

millionaire real estate course or the

stocks course or the other ones but I

would probably wait until after the next

CPI report because I think that's the

game changer if December 13th reiterates

low in Peak inflation

perfect maybe and then we have stability

by then maybe it's safe to go back in if

uh you know you know we get bad CPI uh

in uh December then I probably would

wait to see what other things crack

so anyway these are my thoughts thank

you so much for watching this video

consider subscribing and we'll see in

the next one goodbye